Trade Closed: 2013-07-11 23:02
I may have missed out on that EUR/JPY trade, but at least I took home some nice pips on this GBP/CHF trade! Awesome sauce!
With no data released from either the U.K. or from Switzerland, GBP/CHF stuck within range, as resistance at 1.4480 held strongly.
What’s interesting though was that both the pound and franc were generally stronger, as we saw them both rally hard in the face of dollar weakness. Luckily for me, the franc bulls were able to outmuscle the pound bulls and my trade worked out perfectly.
Profit target hit at 1.4350: +110 pips / +0.935%
Overall, it’s previous obvious that I’m excited with this victory. I had been struggling the past couple of months and this was exactly what I needed to kick start the new quarter. I can’t let it get to my head though – the same exact thing happened last quarter, where I started off with a couple of victories, but ended the quarter with a terrible drawdown.
Right now, I need to maintain my focus and keep gunning for that next setup. Good luck trading this Friday and I hope y’all enjoy the weekend!
Trade Idea: 2013-07-10 03:00
Take a look at this beauty!
That’s right, it’s a solid range on GBP/CHF, brotha! Coming right off a falling channel, GBP/CHF has resorted to trading sideways, with resistance right around the 1.4500 major psychological handle. And look, we’ve got a bearish divergence too! I think this could be the markets way of signaling that another reversal is in the works and that GBP/CHF may make another run towards support at 1.4350.
Fundamentally, this trade also fits my bearish outlook for the pound. With the BOE signaling last week that it has no plans of increasing interest rates soon, I feel the pound may continue to face weak demand, so I decided to sell this sucker at market.
Here’s how I set it up:
Sold at 1.4460, stop loss at 1.4520, profit target at 1.4350.
I set my stop loss tight but gave the pair enough room to test the last two highs. As for my profit target, I’m swinging for the fences and hoping to hit the bottom of the range for a potential 2:1 winner. This should give me a return of about 1% based on my risk of 0.50%.
So what do you guys think of this trade idea? Is this something you would take? Share your thoughts and comments below!